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TMI Blog2021 (1) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... examination/verification conducted by the Ld.CIT(Exemption). Meaning thereby, all the relevant records were submitted before the Revenue Authorities and they have verified the same and were satisfied on this aspect. As in the case of CIT Vs. Manekji Mota Charitable Trust [ 2019 (8) TMI 1497 - BOMBAY HIGH COURT] has held at the time of the registration of the trust u/s.12A, the question of application of income of the trust is premature. Thus, whether taxes are due to be paid on any income received that issue has to be looked into only at the time of assessment proceeding. We are of the considered view that when all the requirements of registration u/s.12AA of the Act has been satisfied by the assessee trust, registration therei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust Act, 1950 with registration Number F-701/AU/dated 04.10.1980. The application was carefully perused and considered along with its annexures. Thereafter, a letter was issued through ITBA portal to the assessee on 24.12.2019 requesting to upload certain other information/clarification by 10.01.2020 in order to process the application. The assessee submitted its compliance on ITBA portal in response to the said notice. 3. The assessee trust was established in 1980 and claims to be engaged in activities such as blood donation camp, felicitation of students, tree plantation etc. On perusal of Financial statements uploaded on the ITBA Portal, it was observed by the Ld. CIT(Exemption) that the assessee has shown addition of ₹ 3.82 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lain the discrepancy is submitted. These facts of the case prima facie indicate that the applicant trust indulge in such activities from which huge receipt has been generated and thus charitable/religious object of trust is not proved. 4. Considering the above facts, I am not satisfied about the charitable nature of objects as well as the genuineness of activities of the trust/institution and hence, the request for grant of registration u/s.12AA of the Income Tax Act, 1961 cannot be accepted. 5. The Ld. Counsel for the assessee at the time of hearing submitted that Ld. CIT(Exemption) was not justified in rejecting the grant of registration and the Ld. CIT(Exemption) is only expected to examine whether the objects of the trust are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal in the case of Kai Shri Mahadebrao Naykude Dnyanvikas Prabhodhini Trust Vs. Commissioner of Income Tax (Exemption) (supra.) that when the objects of the trust were not disputed by the Department, nor they have disputed genuineness of activities of the assessee trust, then non filing of return u/s. 139(4A) of the Act cannot be the ground to deny registration u/s.12AA of the Act to the assessee. It is only at the assessment proceedings, the Assessing Officer can take appropriate steps as per law regarding the non filing of return. However, at the time of granting registration, the object of the assessee trust has to be looked into and genuineness of the activities of the assessee trust should be considered. 9. Reverting to the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the trust u/s.12A, the question of application of income of the trust is premature. Thus, whether taxes are due to be paid on any income received that issue has to be looked into only at the time of assessment proceeding. Considering the aforesaid judicial pronouncements, facts and circumstances in this case, we are of the considered view that when all the requirements of registration u/s.12AA of the Act has been satisfied by the assessee trust, registration therein should be granted. In view thereof, we set aside the order of the Ld. CIT(Exemption) and direct the Department to grant registration u/s. 12AA of the Act to the assessee trust. It will always be open to the Assessing Officer to decide the taxes issues of the income of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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